What is the business case for biodiversity?
The business case for biodiversity conservation is compelling across various sectors and regions. As highlighted by the European Commission, over half of global GDP relies on nature and its services, crucially supporting industries like construction, agriculture, food production, and healthcare.
Moreover, more than 75% of global food crops depend on pollinators, emphasising the critical role biodiversity plays in food security. However, our current global food systems contribute significantly to environmental degradation, with agriculture alone responsible for 80% of deforestation and 70% of freshwater use, driving terrestrial biodiversity loss. Addressing these challenges is not only essential for environmental sustainability but also for economic resilience.
The EU’s recent adoption of the Nature Restoration Law underscores this perspective, framing nature recovery as an investment in a more productive future aligned with climate and biodiversity goals. Studies indicate that every €1 invested in restoration efforts yields a substantial return of at least €8 in environmental and economic benefits, highlighting the strategic value of biodiversity conservation for long-term prosperity.
The Voluntary Biodiversity Credit Market
ClimateTrade has been at the forefront of championing biodiversity, a pioneering advocate and seller of biodiversity credits. Alongside Terrasos, ClimateTrade was one of the earliest organisations to introduce and promote these innovative financial instruments, which are designed to support conservation efforts by assigning economic value to biodiversity preservation. Our initiatives have gained significant recognition and support, including endorsement from the World Economic Forum. By facilitating investments in biodiversity credits, we have enabled businesses and individuals to contribute to the restoration and protection of natural ecosystems, thus playing a crucial role in global sustainability efforts.
Javier Santoyo, Commercial Development Director at ClimateTrade said –
“The EU Council has approved the Nature Restoration Law (NRL) with a qualified majority of 66%, marking a significant victory for the European Union and its citizens and finally, we have clear goals for nature restoration.
An exciting opportunity lies in the development of voluntary biodiversity credit’s markets. These markets allow businesses and individuals to invest in biodiversity conservation by purchasing credits that fund restoration projects. Along with Terrasos, early pioneers in this field, we have shown how biodiversity credits can attract investment and support large-scale ecological restoration. Endorsed by the World Economic Forum, these markets offer a promising avenue to finance the ambitious goals set by the NRL, providing economic incentives for companies to contribute positively to the environment.
While there are many questions to address, today is a great day for everyone committed to a greener future. The EU Green Deal is thriving, with the goal to restore at least 20% of EU land and sea by 2030 and all ecosystems in need by 2050.”
With the restoration of these diverse ecosystems across Europe, there will be significant potential for the development of biodiversity credits. This initiative is expected to garner increased awareness and engagement from companies eager to invest in conservation efforts. The restoration targets set by the EU Nature Restoration Law create an optimal environment for the growth of biodiversity credit markets, enhancing their reputation and scalability. This approach not only incentivizes businesses to contribute to ecological restoration but also aligns with global sustainability goals, marking a pivotal step towards a more resilient and biodiverse future.
If you want to learn how to integrate biodiversity into your business strategy, contact the ClimateTrade team today and take a step towards a greener future.
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- Source: https://climatetrade.com/why-is-the-eu-nature-restoration-law-a-landmark-achievement-for-europes-biodiversity-and-climate-goals/
